Posted on 09/24/2009 7:37:14 AM PDT by madison10
Unlike the "legitimate bull markets" of many foreign markets, Peter Schiff believes the U.S. is merely experiencing a "rally in a bear market," and is lagging the rest of the world "for a reason."
The worst is not over, according to Euro Pacific Capital's Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.
A longtime dollar bear and gold bull, he foresees gold hitting $5000 per ounce "in the next couple of years," and predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1.
Schiff believes gold is currently "climbing a wall of worry" but will eventually become as hot as tech stocks in 1999 and start moving up $100 per day.
Schiff's forecast is based on his view the U.S. dollar is going to collapse under the weight of our massive deficit and reckless policies of the Obama administration, which he compares to the massive spending programs of the 1960s, which paved the way for gold's ascent in the 1970s. "Obama is making the same mistakes as Bush, but he's doing them on a grander scale," says Schiff, who is running for U.S. Senate in Connecticut as a Republican...
(Excerpt) Read more at finance.yahoo.com ...
It makes sense if you set your brains’ controls on “11” while you happen to be entering a tunnel and then spill Pepsi on the dashboard, LOL.
If you ask 2 economists "How are things going?" ....you'll get at least 3 opinions.
Me? Well, I think that things aren't going very well, but it ain't the end of the world yet, either.
He’s right. We’ve fixed none of the fundamentals and have, instead, gone at our economy with a Marxist wrecking ball.
When did Noah prepare the Ark? BEFORE the flood...
Also, consider that for the value to reach $5000, that would be a ratio of dollars to the commodity. Considering the debt problem is world wide, not isolated into a single country, supply and demand may take a hold and you may not have someone or a country willing to pay this much as their currency is crashing as well.
I think $5000 gold is plausible, but it would come in large part due to dollar devaulation, which will mean that the Dow will tend to be priced high due to inflation.
Of course, gold just dropped 2% in the last hour, so who knows.
Peter was right about the housing collapse, but I think he was premature about the gold boom. I have no gold at all but wish I did.
And don’t tell anyone, but silver has farther to move upward than gold. ;)
Agreed. I think if we get to the point where gold is $5k per ounce, we’ll have bigger problems. Like getting food and not freezing to death in the winter.
I am increasingly beginning to believe that this is a matter when, not if.
President Truman often said he wished he could find an economist with just one hand. Why? He said that if you ask a question of an economist, you get an answer. Then the economist will always say “on the other hand, Mr. President.”
Things are grim, but I have a feeling that we will dig ourselves out of this before much longer. That includes taking back the House in 2010. If that happens, Mr. Obama’s days are numbered. Hell, I think they’re numbered anyway. The MSM is beginning to get a mite hinky on him, and a lot of Obama voters must be getting buyer’s remorse in a large way.
He is not a likable figure, and he has no sense of humor. He also uses the word “I” frequently. Not good.
Some of the German investment banks are predicting $2000+ per ounce over the next couple years, so $5000 over the next several years is not impossible. Supposedly the Chinese are urging their people to buy silver, so that would also mean some gold purchases also.
Gerald Celenti said last night that they are going to manipulate the dollar’s strength upwards again.
Another way it *could* hit this without massive dollar devaluation is if a country such as China or India undergoes a massive stockpiling of gold. For example, if China decides they want the Yuan to be a global standard currency and they want to have it backed, at least in part by gold, to make it competitive, they could make a run on the gold market- supply and demand would dictate the cost goes up. At the same time, the dollar's value against its standard competitors such as the Yen or Euro may not change as much as they are also being impacted by the same change in global currency demand.
Invest in salt. :->
Gold and silver BOTH are dropping like rocks... 7:49 Pacific time and both are going straight down on the charts. What the heck is going on? http://www.kitco.com/charts/livesilver.html
My metals dealers keep telling me the smart money has all be made. By the time it comes down to TV Commercials, all it means is that people want to sell high to the last group in. As usual.
Did he perchance say how they were going to do that?
uplift ping
I hope you're right, but unfortunately he has at least 3.5 years to do a lot of irreversable damage. I wonder if the people of this country will ever realize the huge disaster they voted for last Nov?
RUN FOR THE HILLS !
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.